Brazil increases social security contribution ceiling to R$ 8,157.41 per month

Effective January 1, 2025, Brazil has raised the maximum monthly base for social security contributions to R$ 8,157.41 (BRL), up from the previous ceiling. This cap determines the maximum amount of an employee's salary subject to social security contributions, directly affecting payroll calculations for both employers and employees when workers earn above this threshold.

Who is affected

This change affects all employers operating in Brazil and their employees enrolled in the Regime Geral de Previdência Social (RGPS), Brazil's General Social Security Regime. The new ceiling applies to:

• Employees (empregados)
• Domestic workers (empregados domésticos)
• Casual workers (trabalhadores avulsos)

Employers with workers earning monthly salaries at or above R$ 8,157.41 will see their maximum contribution obligations capped at this amount. Employees earning below this threshold will continue to contribute based on their actual salary using the progressive rate table.

What's changing

The maximum monthly base for calculating social security contributions has increased to R$ 8,157.41. Contributions are calculated using a progressive rate structure applied to salary bands:

| Salary band (BRL) | Employee contribution rate |

|——————-|—————————|

| Up to 1,518.00 | 7.5% |

| 1,518.01 to 2,793.88 | 9% |

| 2,793.89 to 4,190.83 | 12% |

| 4,190.84 to 8,157.41 | 14% |

For employees earning above R$ 8,157.41 per month, contributions are calculated only on the first R$ 8,157.41 of salary. The portion of salary exceeding this ceiling is not subject to social security contributions. This ceiling also establishes the maximum benefit base for future social security benefits.

What NEO partners and clients should do

• Update payroll systems by January 2025 to reflect the new R$ 8,157.41 contribution ceiling for all affected employees.
• Recalculate employer and employee social security contributions for January 2025 payroll using the updated ceiling and progressive rate table.
• Review compensation for high earners (those above the previous ceiling) to understand the impact on take-home pay and total employment costs.
• Communicate the change to affected employees so they understand adjustments to their payroll deductions starting with January 2025 compensation.

Sources

• https://www.in.gov.br/en/web/dou/-/portaria-interministerial-mps/mf-n-6-de-10-de-janeiro-de-2025-606526848